Bill Text: NJ A4627 | 2024-2025 | Regular Session | Introduced


Bill Title: Allocates $7.5 million annually of constitutionally dedicated CBT revenue for preservation of land in Highlands Region; extends expiration date of special appraisal process for Green Acres and farmland preservation program; provides aid for watershed lands.

Spectrum: Moderate Partisan Bill (Republican 7-1)

Status: (Introduced) 2024-06-25 - Introduced, Referred to Assembly Environment, Natural Resources, and Solid Waste Committee [A4627 Detail]

Download: New_Jersey-2024-A4627-Introduced.html

ASSEMBLY, No. 4627

STATE OF NEW JERSEY

221st LEGISLATURE

 

INTRODUCED JUNE 25, 2024

 


 

Sponsored by:

Assemblywoman  ALIXON COLLAZOS-GILL

District 27 (Essex and Passaic)

Assemblyman  JOHN DIMAIO

District 23 (Hunterdon, Somerset and Warren)

 

Co-Sponsored by:

Assemblywoman Fantasia

 

 

 

 

SYNOPSIS

     Allocates $7.5 million annually of constitutionally dedicated CBT revenue for preservation of land in Highlands Region; extends expiration date of special appraisal process for Green Acres and farmland preservation program; provides aid for watershed lands.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning the preservation and protection of land in the Highlands Region, amending P.L.2019, c.136 and P.L.1999, c.152, amending and supplementing P.L.2004, c.120, and supplementing P.L.2016, c.12 (C.13:8C-43 et seq.).

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 26 of P.L.1999, c.152 (C.13:8C-26) is amended to read as follows:

     26. a.  Moneys appropriated from the Garden State Green Acres Preservation Trust Fund to the Department of Environmental Protection shall be used by the department to:

     (1)   Pay the cost of acquisition and development of lands by the State for recreation and conservation purposes;

     (2)   Provide grants and loans to assist local government units to pay the cost of acquisition and development of lands for recreation and conservation purposes; and

     (3)   Provide grants to assist qualifying tax exempt nonprofit organizations to pay the cost of acquisition and development of lands for recreation and conservation purposes.

     b.    The expenditure and allocation of constitutionally dedicated moneys for recreation and conservation purposes shall reflect the geographic diversity of the State to the maximum extent practicable and feasible.

     c. (1) Notwithstanding the provisions of section 5 of P.L.1985, c.310 (C.13:18A-34) or [this act] P.L.1999, c.152 (C.13:8C-1 et seq.) , or any rule or regulation adopted pursuant thereto, to the contrary, the value of a pinelands development credit, allocated to a parcel pursuant to P.L.1979, c.111 (C.13:18A-1 et seq.) and the pinelands comprehensive management plan adopted pursuant thereto, shall be made utilizing a value to be determined by either appraisal, regional averaging based upon appraisal data, or a formula supported by appraisal data.  The appraisal and appraisal data shall consider as appropriate:  land values in the pinelands regional growth areas; land values in counties, municipalities, and other areas reasonably contiguous to, but outside of, the pinelands area; and other relevant factors as may be necessary to maintain the environmental, ecological, and agricultural qualities of the pinelands area.

     (2)   No pinelands development credit allocated to a parcel of land pursuant to P.L.1979, c.111 (C.13:18A-1 et seq.) and the pinelands comprehensive management plan adopted pursuant thereto that is acquired or obtained in connection with the acquisition of the parcel for recreation and conservation purposes by the State, a local government unit, or a qualifying tax exempt nonprofit organization using constitutionally dedicated moneys in whole or in part may be conveyed in any manner.  All such pinelands development credits shall be retired permanently.

     d.    (Deleted by amendment, P.L.2010, c.70)

     e.     Moneys appropriated from the fund may be used to match grants, contributions, donations, or reimbursements from federal aid programs or from other public or private sources established for the same or similar purposes as the fund.

     f.     Moneys appropriated from the fund shall not be used by local government units or qualifying tax exempt nonprofit organizations to acquire lands that are already permanently preserved for recreation and conservation purposes, as determined by the department.

     g.    Whenever lands are donated to the State by a public utility, as defined pursuant to Title 48 of the Revised Statutes, for recreation and conservation purposes, the commissioner may make and keep the lands accessible to the public, unless the commissioner determines that public accessibility would be detrimental to the lands or any natural resources associated therewith.

     h.    Whenever the State acquires land for recreation and conservation purposes, the agency in the Department of Environmental Protection responsible for administering the land shall, within six months after the date of acquisition, inspect the land for the presence of any buildings or structures thereon which are or may be historic properties and, within 60 days after completion of the inspection, provide to the New Jersey Historic Preservation Office in the department (1) a written notice of its findings, and (2) for any buildings or structures which are or may be historic properties discovered on the land, a request for determination of potential eligibility for inclusion of the historic building or structure in the New Jersey Register of Historic Places.  Whenever such a building or structure is discovered, a copy of the written notice provided to the New Jersey Historic Preservation Office shall also be sent to the New Jersey Historic Trust and to the county historical commission or advisory committee, the county historical society, the local historic preservation commission or advisory committee, and the local historical society if any of those entities exist in the county or municipality wherein the land is located.

     i.     (Deleted by amendment, P.L.2010, c.70)

     j. (1) Commencing on the date of enactment of P.L.2004, c.120 (C.13:20-1 et al.) and through June 30, [2024] 2029 for lands located in the Highlands Region as defined pursuant to section 3 of P.L.2004, c.120 (C.13:20-3), when the department, a local government unit, or a qualifying tax exempt nonprofit organization seeks to acquire lands for recreation and conservation purposes using constitutionally dedicated moneys in whole or in part, Green

Acres bond act moneys in whole or in part, or constitutionally dedicated CBT moneys pursuant to P.L.2016, c.12 (C.13:8C-43 et seq.) in whole or in part, it shall conduct or cause to be conducted an appraisal or appraisals of the value of the lands that shall be made using (a) the land use zoning of the lands, and any State environmental laws or Department of Environmental Protection rules and regulations that may affect the value of the lands, subject to the appraisal and in effect at the time of proposed acquisition, and (b) the land use zoning of the lands, and any State environmental laws or Department of Environmental Protection rules and regulations that may affect the value of the lands, subject to the appraisal and in effect on January 1, 2004.  The higher of those two values shall be utilized by the department, a local government unit, or a qualifying tax exempt nonprofit organization as the basis for negotiation with the landowner with respect to the acquisition price for the lands.  The landowner shall be provided with both values determined pursuant to this paragraph.

     A landowner may waive any of the requirements of this paragraph and may agree to sell the lands for less than the values determined pursuant to this paragraph.

     The provisions of this paragraph shall be applicable only to lands the owner of which at the time of proposed acquisition is the same person who owned the lands on the date of enactment of P.L.2004, c.120 (C.13:20-1 et al.) and who has owned the lands continuously since that enactment date, or is an immediate family member of that person.

     (2)   (Deleted by amendment, P.L.2010, c.70)

     (3)   The requirements of this subsection shall be in addition to any other requirements of law, rule, or regulation not inconsistent therewith.

     (4)   This subsection shall not:

     (a)   apply in the case of lands to be acquired with federal moneys in whole or in part;

     (b)   (Deleted by amendment, P.L.2010, c.70); or

     (c)   alter any requirements to disclose information to a landowner pursuant to the "Eminent Domain Act of 1971," P.L.1971, c.361 (C.20:3-1 et seq.).

     (5)   For the purposes of this subsection, "immediate family member" means a spouse, child, parent, sibling, aunt, uncle, niece, nephew, first cousin, grandparent, grandchild, father-in-law, mother-in-law, son-in-law, daughter-in-law, stepparent, stepchild, stepbrother, stepsister, half brother, or half sister, whether the individual is related by blood, marriage, or adoption.

     k.    The department shall adopt guidelines for the evaluation and priority ranking process which shall be used in making decisions concerning the acquisition of lands by the State for recreation and conservation purposes using moneys from the Garden State Green Acres Preservation Trust Fund and from any other source.  The guidelines shall be designed to provide, to the maximum extent practicable and feasible, that such moneys are spent equitably among the geographic areas of the State.  The guidelines, and any subsequent revisions thereto, shall be published in the New Jersey Register.  The adoption of the guidelines or of the revisions thereto, shall not be subject to the requirements of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).

     l.     In making decisions concerning the acquisition of lands by the State for recreation and conservation purposes using moneys from the Garden State Green Acres Preservation Trust Fund, in the evaluation and priority ranking process the department shall accord three times the weight to acquisitions of lands that would protect water resources, and two times the weight to acquisitions of lands that would protect flood-prone areas, as those criteria are compared to the other criteria in the priority ranking process.

     m.   The department, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations that establish standards and requirements regulating any activity on lands acquired by the State for recreation and conservation purposes using constitutionally dedicated moneys to assure that the activity on those lands does not diminish the protection of surface water or groundwater resources.

     Any rules and regulations adopted pursuant to this subsection shall not apply to activities on lands acquired prior to the adoption of the rules and regulations.

     n. (1) The department, within three months after the date of the first meeting of the Highlands Water Protection and Planning Council established pursuant to section 4 of P.L.2004, c.120 (C.13:20-4), shall consult with and solicit recommendations from the council concerning land preservation strategies and acquisition plans in the Highlands Region as defined in section 3 of P.L.2004, c.120 (C.13:20-3).

     The council's recommendations shall also address strategies and plans concerning establishment by the department of a methodology for prioritizing the acquisition of land in the Highlands preservation area, as defined in section 3 of P.L.2004, c.120 (C.13:20-3), for recreation and conservation purposes using moneys from the Garden State Green Acres Preservation Trust Fund, especially with respect to (a) any land that has declined substantially in value due to the implementation of the "Highlands Water Protection and Planning Act," P.L.2004, c.120 (C.13:20-1 et al.), and (b) any major Highlands development, as defined in section 3 of P.L.2004, c.120 (C.13:20-3), that would have qualified for an exemption pursuant to paragraph (3) of subsection a. of section 30 of P.L.2004, c.120 (C.13:20-28) but for the lack of a necessary State permit as specified in subparagraph (b) or (c), as appropriate, of paragraph (3) of subsection a. of section 30 of P.L.2004, c.120 (C.13:20-28), and for which an application for such a permit had been submitted to the Department of Environmental Protection and deemed by the department to be complete for review on or before March 29, 2004.  The recommendations may also include a listing of specific parcels in the Highlands preservation area that the council is aware of that meet the criteria of subparagraph (a) or (b) of this paragraph and for that reason should be considered by the department as a priority for acquisition, but any such list shall remain confidential notwithstanding any provision of P.L.1963, c.73 (C.47:1A-1 et seq.) or any other law to the contrary.

     (2)   In making decisions concerning applications for funding submitted by municipalities in the Highlands planning area, as defined in section 3 of P.L.2004, c.120 (C.13:20-3), to acquire or develop lands for recreation and conservation purposes using moneys from the Garden State Green Acres Preservation Trust Fund, in the evaluation and priority ranking process the department shall accord a higher weight to any application submitted by a municipality in the Highlands planning area that has amended its development regulations in accordance with section 13 of P.L.2004, c.120 (C.13:20-13) to establish one or more receiving zones for the transfer of development potential from the Highlands preservation area, as defined in section 3 of P.L.2004, c.120 (C.13:20-3), than that which is accorded to comparable applications submitted by other municipalities in the Highlands planning area that have not made such amendments to their development regulations.

     o.    Notwithstanding any provision of P.L.1999, c.152 (C.13:8C-1 et seq.) to the contrary, for State fiscal years 2005 through 2009, the sum spent by the department in each of those fiscal years for the acquisition of lands by the State for recreation and conservation purposes using moneys from the Garden State Green Acres Preservation Trust Fund in each county of the State shall be not less, and may be greater if additional sums become available, than the average annual sum spent by the department therefor in each such county, respectively, for State fiscal years 2002 through 2004, provided there is sufficient and appropriate lands within the county to be so acquired by the State for such purposes.

(cf:  P.L.2019, c.136, s.8)

 

     2.    Section 38 of P.L.1999, c.152 (C.13:8C-38) is amended to read as follows:

     38. a. All acquisitions or grants made pursuant to section 37 of P.L.1999, c.152 (C.13:8C-37) shall be made with respect to farmland devoted to farmland preservation under programs established by law.

     b.    The expenditure and allocation of constitutionally dedicated moneys for farmland preservation purposes shall reflect the geographic diversity of the State to the maximum extent practicable and feasible.

     c.     The committee shall implement the provisions of section 37 of P.L.1999, c.152 (C.13:8C-37) in accordance with the procedures and criteria established pursuant to the "Agriculture Retention and Development Act," P.L.1983, c.32 (C.4:1C-11 et seq.) except as provided otherwise by P.L.1999, c.152 (C.13:8C-1 et seq.).

     d.    The committee shall adopt the same or a substantially similar method for determining, for the purposes of P.L.1999, c.152 (C.13:8C-1 et seq.), the committee's share of the cost of a development easement on farmland to be acquired by a local government as that which is being used by the committee on the date of enactment of P.L.1999, c.152 (C.13:8C-1 et seq.) for prior farmland preservation funding programs.

     e.     Notwithstanding the provisions of section 24 of P.L.1983, c.32 (C.4:1C-31) or  P.L.1999, c.152 (C.13:8C-1 et seq.), or any rule or regulation adopted pursuant thereto to the contrary, whenever the value of a development easement on farmland to be acquired using constitutionally dedicated moneys in whole or in part is determined based upon the value of any pinelands development credits allocated to the parcel pursuant to P.L.1979, c.111 (C.13:18A-1 et seq.) and the pinelands comprehensive management plan adopted pursuant thereto, the committee shall determine the value of the development easement by:

     (1) conducting a sufficient number of fair market value appraisals as it deems appropriate to determine the value for farmland preservation purposes of the pinelands development credits;

     (2) considering development easement values in counties, municipalities, and other areas (a) reasonably contiguous to, but outside of, the pinelands area, which in the sole opinion of the committee constitute reasonable development easement values in the pinelands area for the purposes of this subsection, and (b) in the pinelands area where pinelands development credits are or may be utilized, which in the sole opinion of the committee constitute reasonable development easement values in the pinelands area for the purposes of this subsection;

     (3) considering land values in the pinelands regional growth areas;

     (4) considering the importance of preserving agricultural lands in the pinelands area; and

     (5) considering such other relevant factors, including the rate of inflation, as may be necessary to increase participation in the farmland preservation program by owners of agricultural lands located in the pinelands area.

     f.     No pinelands development credit that is acquired or obtained in connection with the acquisition of a development easement on farmland or fee simple title to farmland by the State, a local government unit, or a qualifying tax exempt nonprofit organization using constitutionally dedicated moneys in whole or in part may be conveyed in any manner.  All such pinelands development credits shall be retired permanently.

     g.    (Deleted by amendment, P.L.2010, c.70)

     h.    Any farmland for which a development easement or fee simple title has been acquired pursuant to section 37 of P.L.1999, c.152 (C.13:8C-37) shall be entitled to the benefits conferred by the "Right to Farm Act," P.L.1983, c.31 (C.4:1C-1 et al.) and the "Agriculture Retention and Development Act," P.L.1983, c.32 (C.4:1C-11 et al.).

     i.     (Deleted by amendment, P.L.2010, c.70)

     j. (1) Commencing on the date of enactment of P.L.2004, c.120 (C.13:20-1 et al.) and through June 30, [2024] 2029 for lands located in the Highlands Region as defined pursuant to section 3 of P.L.2004, c.120 (C.13:20-3), when the committee, a local government unit, or a qualifying tax exempt nonprofit organization seeks to acquire a development easement on farmland or the fee simple title to farmland for farmland preservation purposes using constitutionally dedicated moneys in whole or in part, Green Acres bond act moneys in whole or in part, or constitutionally dedicated CBT moneys pursuant to P.L.2016, c.12 (C.13:8C-43 et seq.) in whole or in part, it shall conduct or cause to be conducted an appraisal or appraisals of the value of the lands that shall be made using (a) the land use zoning of the lands, and any State environmental laws or Department of Environmental Protection rules and regulations that may affect the value of the lands, subject to the appraisal and in effect at the time of proposed acquisition, and (b) the land use zoning of the lands, and any State environmental laws or Department of Environmental Protection rules and regulations that may affect the value of the lands, subject to the appraisal and in effect on January 1, 2004.  The higher of those two values shall be utilized by the committee, a local government unit, or a qualifying tax exempt nonprofit organization as the basis for negotiation with the landowner with respect to the acquisition price for the lands.  The landowner shall be provided with both values determined pursuant to this paragraph.

     A landowner may waive any of the requirements of this paragraph and may agree to sell the lands for less than the values determined pursuant to this paragraph.

     The provisions of this paragraph shall be applicable only to lands the owner of which at the time of proposed acquisition is the same person who owned the lands on the date of enactment of P.L.2004, c.120 (C.13:20-1 et al.) and who has owned the lands continuously since that enactment date, or is an immediate family member of that person.

     (2) (Deleted by amendment, P.L.2010, c.70)

     (3) The requirements of this subsection shall be in addition to any other requirements of law, rule, or regulation not inconsistent therewith.

     (4) This subsection shall not:

     (a) apply in the case of lands to be acquired with federal moneys in whole or in part;

     (b) (Deleted by amendment, P.L.2010, c.70); or

     (c) alter any requirements to disclose information to a landowner pursuant to the "Eminent Domain Act of 1971," P.L.1971, c.361 (C.20:3-1 et seq.).

     (5) For the purposes of this subsection, "immediate family member" means a spouse, child, parent, sibling, aunt, uncle, niece, nephew, first cousin, grandparent, grandchild, father-in-law, mother-in-law, son-in-law, daughter-in-law, stepparent, stepchild, stepbrother, stepsister, half-brother, or half-sister, whether the individual is related by blood, marriage, or adoption.

     k.    The committee and the Department of Environmental Protection, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall jointly adopt rules and regulations that establish standards and requirements regulating any improvement on lands acquired by the State for farmland preservation purposes using constitutionally dedicated moneys to assure that any improvement does not diminish the protection of surface water or groundwater resources.

     Any rules and regulations adopted pursuant to this subsection shall not apply to improvements on lands acquired prior to the adoption of the rules and regulations.

     l. (1) The committee, within three months after the date of the first meeting of the Highlands Water Protection and Planning Council established pursuant to section 4 of P.L.2004, c.120 (C.13:20-4), shall consult with and solicit recommendations from the council concerning farmland preservation strategies and acquisition plans in the Highlands Region as defined in section 3 of P.L.2004, c.120 (C.13:20-3).

     The council's recommendations shall also address strategies and plans concerning establishment by the committee of a methodology for prioritizing the acquisition of development easements and fee simple titles to farmland in the Highlands preservation area, as defined in section 3 of P.L.2004, c.120 (C.13:20-3), for farmland preservation purposes using moneys from the Garden State Farmland Preservation Trust Fund, especially with respect to farmland that has declined substantially in value due to the implementation of the "Highlands Water Protection and Planning Act," P.L.2004, c.120 (C.13:20-1 et al.).  The recommendations may also include a listing of specific parcels in the Highlands preservation area that the council is aware of that have experienced a substantial decline in value and for that reason should be considered by the committee as a priority for acquisition, but any such list shall remain confidential notwithstanding any provision of P.L.1963, c.73 (C.47:1A-1 et seq.) or any other law to the contrary.

     (2) In prioritizing applications for funding submitted by local government units in the Highlands planning area, as defined in section 3 of P.L.2004, c.120 (C.13:20-3), to acquire development easements on farmland in the Highlands planning area using moneys from the Garden State Farmland Preservation Trust Fund, the committee shall accord a higher weight to any application submitted by a local government unit to preserve farmland in a municipality in the Highlands planning area that has amended its

development regulations in accordance with section 13 of P.L.2004, c.120 (C.13:20-13) to establish one or more receiving zones for the transfer of development potential from the Highlands preservation area, as defined in section 3 of P.L.2004, c.120 (C.13:20-3), than that which is accorded to comparable applications submitted by other local government units to preserve farmland in municipalities in the Highlands planning area that have not made such amendments to their development regulations.

     m.   Notwithstanding any provision of P.L.1999, c.152 (C.13:8C-1 et seq.) to the contrary, for State fiscal years 2005 through 2009, the sum spent by the committee in each of those fiscal years for the acquisition by the committee of development easements and fee simple titles to farmland for farmland preservation purposes using moneys from the Garden State Farmland Preservation Trust Fund in each county of the State shall be not less, and may be greater if additional sums become available, than the average annual sum spent by the department therefor in each such county, respectively, for State fiscal years 2002 through 2004, provided there is sufficient and appropriate farmland within the county to be so acquired by the committee for such purposes.

(cf:  P.L.2023, c.245, s.1.)

 

     3.  Section 1 of P.L.2019, c.136 (C.13:8C-47.1) is amended to read as follows:

     1.  a.  [In] Except as otherwise provided in subsection c. of this section, in each State fiscal year commencing in State fiscal year 2020 and annually thereafter, of the amount credited by the State Treasurer to the Preserve New Jersey Fund Account pursuant to subparagraph (b) of paragraph (1) of subsection a. of section 4 of P.L.2016, c.12 (C.13:8C-46):

     (1)   62 percent shall be deposited into the Preserve New Jersey Green Acres Fund;

     (2)   31 percent shall be deposited into the Preserve New Jersey Farmland Preservation Fund; and

     (3)   seven percent shall be deposited into the Preserve New Jersey Historic Preservation Fund.

     b. (1) Beginning July 1, 2022, and annually thereafter, the Garden State Preservation Trust shall conduct a review of the appropriations of constitutionally dedicated CBT moneys to, and the expenditures thereof by, the Department of Environmental Protection, the State Agriculture Development Committee, and the New Jersey Historic Trust for their respective programs.  In conducting this review, the trust shall: evaluate the demonstrated need for funding for the acquisition or development of lands for recreation and conservation purposes, including Blue Acres projects, farmland preservation purposes, or historic preservation purposes based upon available projects, applicant demand, and past appropriations and expenditures for these purposes; and hold a public hearing to solicit public input on appropriate funding allocations for the department, committee, and New Jersey Historic Trust, for the upcoming fiscal year. 

     (2)   If the trust determines, based on the review conducted pursuant to paragraph (1) of this subsection, that it would be appropriate to revise the allocations set forth in subsection a. of this section, or section 6, 8, or 9 of P.L.2016, c.12 (C.13:8C-48, 50, or 51), the trust shall send a written notification to the Chairperson of the Senate Environment and Energy Committee, the Assembly Agriculture and Natural Resources Committee, and the Assembly Environment and Solid Waste Committee, or their successors, of its findings and recommendations concerning future funding allocations for the Preserve New Jersey Green Acres Fund, the Preserve New Jersey Farmland Preservation Fund, or the Preserve New Jersey Historic Preservation Fund. 

     (3)   A recommendation by the trust to reallocate constitutionally dedicated CBT moneys based on the review conducted pursuant to this subsection shall not alter the allocations set forth in subsection a. of this section or section 6, 8, or 9 of P.L.2016, c.12 (C.13:8C-48, 50, or 51) for any fiscal year unless authorized by the Legislature.

     c.  Commencing on July 1 next following the effective date of P.L.    , c.    (C.       ) (pending before the Legislature as this bill) and in each State fiscal year annually thereafter, there shall be deposited by the State Treasurer the following amounts into the Preserve New Jersey Highlands Fund created pursuant to section 4 of P.L.    , c.    (C.       ) (pending before the Legislature as this bill) to be used for the purposes of section 5 of P.L.    , c.    (C.      ) (pending before the Legislature as this bill):

     (1) $5 million of the amount deposited into the Preserve New Jersey Green Acres Fund pursuant to paragraph (1) of subsection a. of this section; and

     (2) $2.5 million of the amount deposited into the Preserve New Jersey Farmland Preservation Fund pursuant to paragraph (2) of subsection a. of this section.

(cf:  P.L.2019, c.136, s.1)

 

     4.    (New section) a.  The State Treasurer shall establish a fund to be known as the "Preserve New Jersey Highlands Preservation Fund" and shall deposit into the fund all moneys received pursuant to subsection c. of section 1 of P.L.2019, c.136 (C.13:8C-47.1) and any other moneys appropriated by law for deposit into the fund.  Moneys in the fund shall be invested in permitted investments or shall be held in interest-bearing accounts in those depositories as the State Treasurer may select, and may be invested and reinvested in permitted investments or as other trust funds in the custody of the State Treasurer in the manner provided by law.  All interest or other income or earnings derived from the investment or reinvestment of moneys in the fund shall be credited to the fund.

     b.    The moneys in the Preserve New Jersey Highlands Preservation Fund are specifically dedicated and shall be used by the Highlands Water Protection and Planning Council, established pursuant to section 4 of P.L.2004, c.120 (C.13:20-4), in accordance with the provisions of this section and section 5 of P.L.    , c.   (C.   ) (pending before the Legislature as this bill), only for:

     (1) the acquisition of lands for recreation and conservation purposes;

     (2) the acquisition of lands for farmland preservation purposes; and

     (3) as the State match for federal funding available pursuant to the Highlands Conservation Act, Pub.L. 108-421, or any other similar federal funding, for the acquisition of land in the Highlands Region from a willing seller for the permanent protection of those lands.

     c.     Moneys in the fund shall not be expended except in accordance with appropriations from the fund made by law.  Any act appropriating moneys from the Preserve New Jersey Highlands Preservation Fund shall identify any particular project or projects to be funded by the moneys, and any expenditure for a project for which the location is not identified by municipality and county in the appropriation shall require the approval of the Joint Budget Oversight Committee.  Any change in project sponsor, site, or type that has received an appropriation from the fund, shall require the approval of the Joint Budget Oversight Committee or its successor but shall not require the approval of the Garden State Preservation Trust.

     d.    Unexpended moneys due to project withdrawals, cancellations, or cost savings shall be returned to the fund.

     e.     The Highlands Water Protection and Planning Council shall include an accounting of the moneys in the Preserve New Jersey Highlands Preservation Fund in the annual report prepared pursuant to section 29 of P.L.2004, c.120 (C.13:20-27).  The accounting shall identify, for each year and cumulatively:  the amount of appropriations from the fund; the expenditure of moneys from the fund; the amount of land preserved with moneys in the fund; and the amount of federal funds received from using moneys in the fund as the State match.

 

     5.    (New section) a.  As used in this section:

     "Agricultural deed restriction" means an "agricultural deed restriction for farmland preservation purposes" as defined in section 3 of P.L.1983, c.32 (C.4:1C-13).

     "Agricultural preservation priority area" means an area identified in the Highlands regional master plan as an agricultural priority area.

     "Charitable conservancy" means the same as the defined is defined in section 2 of P.L.1979, c.378 (C.13:8B-2).    "Conservation easement" means a deeded transfer of an interest in real property under which the property owner agrees to permanently restrict the land in perpetuity from future development and to conserve and protect open space, scenic, agricultural, or other natural resource values on the land covered by the easement.

     "Conservation preservation priority area" means an area identified in the Highlands regional master plan as a conservation priority area.

     "Council" means the Highlands Water Protection and Planning Council established pursuant to section 4 of the "Highlands Water Protection and Planning Act," P.L.2004, c.120 (C.13:20-4).

     "Highlands development credit" means a transfer of development rights credit that may be bought, sold, or transferred in accordance with the transfer of development rights program for the Highlands Region established by the council pursuant to section 13 of P.L.2004, c.120 (C.13:20-13).

     "Highlands Region" means the region designated by subsection a. of section 7 of P.L.2004, c.120 (C.13:20-7).

     "Highlands regional master plan" means the regional master plan as defined in section 3 of P.L.2004, c.120 (C.13:20-3).

     "Passive recreation" means a non-motorized outdoor recreational activity, such as nature observation, hiking, biking, and canoeing or kayaking, that requires a minimum of facilities or development and that has a minimal environmental impact on natural resources.

     "Preserve New Jersey Highlands Preservation Fund" means the fund established pursuant to section 4 of P.L.    , c.    (C.       ) (pending before the Legislature as this bill).

     "Special environmental zone" means an area identified in the Highlands regional master plan as a special environmental zone.

     b.  Of the amount deposited in the Preserve New Jersey Highlands Preservation Fund, each year:

     (1) $2,500,000 shall be allocated for the Highlands Open Space Partnership Funding program to provide grants to local government units, charitable conservancies, or qualifying tax exempt nonprofit organizations as provided in subsection c. of this section;

     (2) $2,500,000 shall be allocated for the acquisition of Highlands development credits from landowners pursuant to the transfer of development rights program for the Highlands Region established pursuant to section 13 of P.L.2004, c.120 (C.13:20-13), and as provided in subsection d. of this section; and

     (3) $2,500,000 shall be allocated for farmland preservation for the preservation of farmland that does not qualify for preservation by the State Agriculture Development Committee, and as provided in subsection e. of this section.

     c.     (1) Funds allocated pursuant to paragraph (1) of subsection b. of this section for the Highlands Open Space Partnership Funding program shall be used for:

     (a) the fee simple acquisition of land for recreation and conservation, including passive recreation purposes, including, but not limited to:

     (i) parks, natural areas, and greenways; and

     (ii) the protection of natural resources as identified in the Highlands regional master plan; and

     (b) the acquisition of conservation easements for conservation purposes, including, but not limited to:

     (i) parks, natural areas, and greenways;

     (ii) farmland preservation; and

     (iii) the protection of natural resources and agricultural preservation priority areas.

     (2) A grant awarded with funds pursuant to this section shall require the land to be restricted in perpetuity from future development to protect any existing natural resources located on the property in accordance with requirements of a conservation easement approved by the council, which conservation easement shall be:

     (a) held by the council, the Department of Environmental Protection, a charitable conservancy, or a qualifying tax exempt nonprofit organization; and

     (b) specifically and expressly enforceable by the entity which holds the conservation easement and the council; and

     (3) A grant awarded pursuant to this section shall be in an amount not to exceed 50 percent of the total purchase price of the land.

     d.  (1) Funds allocated pursuant to paragraph (2) of subsection b. of this section shall be used for the acquisition of Highlands development credits for the protection of land:

     (a) of significant ecological or agricultural importance;

     (b) that serves to complement or buffer publicly-owned and managed lands preserved for recreation and conservation purposes;

     (c) that will result in the protection of properties meeting the criteria set forth in subsection f. of this section; or

     (d) that otherwise furthers the purposes of the Highlands regional master plan.

     (2) To be eligible for funding pursuant to this subsection, a landowner shall:

     (a) possess a marketable title and be legally empowered to restrict the use of the land in a manner consistent with the "Highlands Water Protection and Planning Act," P.L.2004, c.120 (C.13:20-1 et al.), any rules and regulations adopted pursuant thereto, the Highlands regional master plan, and this section; and

     (b) place a conservation easement on the land, which conservation easement shall:

     (i) be held by the council, a charitable conservancy, or a qualifying tax exempt nonprofit organization; and

     (ii) specifically and expressly enforceable by the entity which holds the conservation easement and the council.

     e.  Funds allocated pursuant to paragraph (3) of subsection b. of this section shall be used for the preservation of farmland in the Highlands region, and shall comply with the requirements of subsections c. and d. as applicable to the application.  Any land that receives funding pursuant to this subsection shall be subject to an agricultural deed restriction, and a copy of the agricultural deed restriction shall be provided to the State Agriculture Development Committee.

     f.     Priority for funding with moneys in the Preserve New Jersey Highlands Preservation Fund shall be provided to the acquisition of land based on the following criteria, in no specific order:

     (1) land located in a special environmental zone area;

     (2) land located in a high conservation preservation priority area or high agricultural preservation priority area;

     (3) land located in a moderate conservation preservation priority area or moderate agricultural preservation priority area; and

     (4) land that would provide or improve connectivity to existing preserved lands, are contiguous to existing preserved farmland, or otherwise improve access to existing lands preserved for recreation and conservation purposes.

     g.    In no case shall moneys in the Preserve New Jersey Highlands Preservation Fund be used for the acquisition in fee simple or a lesser interest of any land that:

     (1) requires condemnation;

     (2) contains significant environmental contamination, including, but not limited to, former landfill sites, sites with a history of operating as a facility with substantial potential for on-site contamination, or sites listed on the Department of Environmental Protection's Known Contaminated Sites List; or

     (3) is already preserved or acquired by the State, a local government unit, a charitable conservancy, or a qualifying tax exempt nonprofit organization.

     h.    All Highlands development credits acquired with moneys from the Preserve New Jersey Highlands Preservation Fund shall be retired permanently.

     i.     Every agricultural deed restriction or conservation easement, as applicable, placed on land pursuant to this section shall be filed and recorded with the county clerk of the county in which the land is located in the same manner as a deed.

     j.     The council shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations for the submittal and review of applications for funding pursuant to this section and may adopt criteria concerning the use of the funds pursuant to this section that are in addition to the criteria set forth in this section; provided however, that in no case shall funds allocated pursuant to this section be used for any other purpose than the acquisition and preservation of land for recreation

and conservation purposes or farmland preservation purposes.  The council may use the criteria in the rules codified at N.J.A.C.7:70-1.1 et seq., and adopted by the council pursuant to subsection y. of section 6 of P.L.2004, c.120 (C.13:20-6), provided that the rules are, at a minimum, consistent with the provisions of this section.

     k.    At least once each State fiscal year, the council shall submit to the Garden State Preservation Trust a list of projects recommended to be funded with moneys from the Preserve New Jersey Highlands Preservation Fund.  The Garden State Preservation Trust shall review the submitted project list, and prepare and submit to the Governor and to the President of the Senate and the Speaker of the General Assembly for introduction in the Legislature, proposed legislation appropriating moneys pursuant to this section to fund projects on any such list.  The Legislature may approve one or more appropriation bills containing a project list or lists submitted by the Garden State Preservation Trust pursuant to this subsection.

 

     6.  Section 21 of P.L.2004, c.120 (C.13:20-19) is amended to read as follows:

     21. a.  There is created in the Department of the Treasury a special non-lapsing fund to be known as the "Highlands Protection Fund."  The monies in the fund are dedicated and shall be used only to carry out the purposes enumerated in subsection b. of this section.  The fund shall be credited with all revenues collected and deposited in the fund pursuant to section 4 of P.L.1968, c.49 (C.46:15-8), all interest and other income received from the investment of monies in the fund, and any monies which, from time to time, may otherwise become available for the purposes of the fund.  Pending the use thereof pursuant to the provisions of subsection b. of this section, the monies deposited in the fund shall be held in interest-bearing accounts in public depositories, as defined pursuant to section 1 of P.L.1970, c.236 (C.17:9-41), and may be invested or reinvested in such securities as are approved by the State Treasurer.  Interest or other income earned on monies deposited into the fund shall be credited to the fund for use as set forth in subsection b. of this section for other monies in the fund.

     b.    Monies deposited in the "Highlands Protection Fund" shall be used only for:

     (1)   payments to the "Highlands Municipal Property Tax Stabilization Fund" established pursuant to subsection b. of section 19 of [this act] P.L.2004, c.120 (C.54:1-85) in such amounts as are necessary to provide property tax stabilization aid pursuant to that section;

     (2)   payments of watershed moratorium offset aid pursuant to section 1 of P.L.1999, c.225 (C.58:29-8) and watershed property municipal aid pursuant to section 7 of P.L.    , c.    (C.   ) (pending before the Legislature as this bill);

     (3)   the making of grants by the Highlands Water Protection and Planning Council pursuant to sections 13 and 18 of [this act] P.L.2004, c.120 (C.13:20-13 and C.13:20-18); and

     (4) allocations to the Pinelands Property Tax Assistance Fund established pursuant to section 20 of [this act] P.L.2004, c.120 (C.54:1-84).

(cf:  P.L.2004, c.120, s.21)

 

     7.  (New section)  a.  Funds shall be distributed each State fiscal year from the "Highlands Protection Fund" created pursuant to section 21 of P.L.2004, c.120 (C.13:20-19) to each municipality within the Highlands Region that that does not receive watershed moratorium offset aid pursuant to section 1 of P.L.1999, c.225 (C.58:29-8) but hosts watershed lands, for those watershed lands, as determined by the Highlands Water Protection and Planning Council, in amounts equal to the per acre rate provided for watershed moratorium offset aid.

     b.   The State Treasurer shall include in its annual budget request to the Governor the moneys necessary to distribute funds to those municipalities eligible for watershed property municipal aid pursuant to subsection a. of this section.  The Legislature shall appropriate the necessary funds to the department for this purpose.

 

     8.  This act shall take effect immediately.

 

 

STATEMENT

 

     This bill would amend and supplement the "Preserve New Jersey Act," P.L.2016, c.12 (C.13:8C-43 et seq.), to allocate $7.5 million annually of constitutionally dedicated Corporation Business Tax (CBT) revenue to the Highlands Water Protection and Planning Council (council) for the preservation of land in the Highlands Region.

     The funding in this bill is provided from constitutionally dedicated CBT revenues pursuant to Article VIII, Section II, paragraph 6 of the State Constitution, which dedicates six percent of the CBT for certain environmental purposes.  Under the "Preserve New Jersey Act" (act), P.L.2016, c.12 (C.13:8C-43 et seq.), of the dedicated CBT revenues allocated for open space, farmland, and historic preservation, each year:  62 percent is allocated to the Department of Environmental Protection (DEP) for recreation and conservation purposes; 31 percent is allocated to the State Agriculture Development Committee (SADC) for farmland preservation; and the remaining seven percent is allocated to the New Jersey Historic Trust for historic preservation.

     Under this bill, $5 million of the amount allocated each year to the DEP and $2.5 million of the amount allocated to the SADC would be deposited into the "Preserve New Jersey Highlands Preservation Fund," a new fund created by the bill.  These moneys, totaling $7.5 million each year would be used by the council to preserve lands located in the Highlands Region. 

     In addition, this bill extends the expiration date of the special appraisal process provided by law for State-funded land acquisitions under the Green Acres program and the farmland preservation program from June 30, 2024 to June 30, 2029 for lands located in the Highlands Region.  The term "special appraisal process" refers to the process in which the State or other eligible participants are currently required by law to conduct two appraisals of lands that are proposed for acquisition, one of which is based on the property value on the proposed acquisition date, the other based on the value of the property as of January 1, 2004.  The higher of the two values is used as the basis of negotiation with the landowner when determining the property's final acquisition price.

     In 2004, "Highlands Water Protection and Planning Act," P.L.2004, c.120 (C.13:20-1 et al.), was enacted to protect and preserve the drinking water and natural resources of the New Jersey Highlands Region, which is the source of the drinking water of more than half of the residents of New Jersey and offers unique hiking, bird watching, fishing, and other naturalist and recreational activities.

Approximately 230 square miles, or approximately 17 percent of land, in the Highlands Region, approximately is considered "undeveloped, but developable" land.  The council administers, pursuant to rules and regulations found at N.J.A.C.7:70-1.1 et seq., two programs to preserve land in the region in order to protecting the region's vital resources:  the Highlands Open Space Partnership Funding Program and the Highlands Development Credit Purchase Program.  This bill would provide a portion of constitutionally dedicated CBT moneys for open space and farmland preservation to the council to be used for these two programs, in accordance with the requirements of section 5 of this bill and rules and regulations adopted by the council. 

     The council would also be able to use the funding to be provided by the bill as the State match to apply for funding from the federal government pursuant to the Highlands Conservation Act, Pub.L. 108-421, or other similar federal funding.  This federal funding is awarded by the United State Fish and Wildlife Service through the Highland Conservation Act Grant Program, which is designed to assist Connecticut, New Jersey, New York, and Pennsylvania in conserving land and natural resources in the Highlands Region through federal assistance for land conservation projects in which a State entity acquires land, or an interest in land, from a willing seller to permanently protect resources of high conservation value.

     Finally, this bill would require that State aid be distributed each State fiscal year from the "Highlands Protection Fund" to each municipality within the Highlands Region that that does not receive watershed moratorium offset aid pursuant to section 1 of P.L.1999, c.225 (C.58:29-8) but hosts watershed lands, for those watershed lands, as determined by the Highlands Water Protection and Planning Council, in amounts equal to the per acre rate provided for watershed moratorium offset aid.  The State Treasurer would be required to include in its annual budget request to the Governor the moneys necessary to distribute funds to those municipalities eligible for watershed property municipal aid.  

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